The law on tax compromise, foreseeing the voluntary revision of unpaid tax liabilities by payers of profit tax and value added tax (VAT) at the rate of 5% during 90 days, took effect on January 17, 2015, the State Fiscal Service of Ukraine’s press service has reported.

"This law appeared in response to a request from businesses, they want to turn the page and start working transparently. Tax compromise is not a liability, but a business right. Taking into account the signing of the Association Agreement with the EU and the opportunities it opens up for Ukrainian businesses, I'm sure that many companies will use this tool," the State Fiscal Service reported, citing Service Head Ihor Bilous.

The fiscal service said that according to the law, the total duration of the procedure for reaching tax compromise totals 70 calendar days from the day a revision report is submitted. The total term during which taxpayers can decide on the application of the tax compromise procedure is 90 calendar days from the moment the law took effect.

"During the said period taxpayers can file a report on the revision of tax liabilities, on the profit tax of companies and/or VAT for any tax periods before April 1, 2014, in which they define the sum of extra expenses taken into account during the defining of taxable assets, in line with Ukrainian law," reads the report.

The service will within 10 working days decide if a check is necessary or, if a check is deemed to be unnecessary, will confirm a certain sum of revised tax.

According to the law, tax compromise procedures also apply to cases when a tax document check on taxpayers began and after report on a check has been drawn up. Taxpayers could then decide to submit the adjusted calculations of tax liabilities.

The adjusted and checked transactions in the periods where the tax compromise is applied will not be changed by taxpayers in the future and supervisory agencies will not check them.